FHA Home Loan Rates October 5 – Current Rates Set to Move
Posted on | October 5, 2009 | No Comments
FHA home loan rates have a very inactive weekend but are set to make a move. On October 5th, 2009 we are seeing current 30 year fixed FHA loan rate at 5.63%. The conventional 30 year fixed is at 4.88% and most lenders offer FHA rates around .75% higher than conventional rates. This is not true for every lender but is most often the case. Mortgage interest rates remain at extremely low levels but are poised to move even lower if the 10 year treasury rate yield drops this week.
Mortgage interest rates and the 10 year treasury rate yield have a very strong correlation; as one goes so goes the other. The 10 year treasury rate yield was the only reason that mortgage rates stayed above 5% this summer. As the summer concluded the 10 year yield rolled over and started a down trend. This is where we are currently with the only strong support remaining being the 200 day moving average.
On Friday the 10 year yield hit the 200 day moving average and bounce higher. This week it will be interesting to see if the yield closes at or near its 200 dma. If it does you can expect conventional mortgage rates to be very close to 4.75% which will be near all time lows. This is sure to spark the interest of the public as well as every newspaper in the nation.
Make sure to check out Subprime Blogger on a daily basis for your FHA loan rates. We will display the current FHA loan rates as well as a short commentary similar to the above column. Bookmark the following FHA Loan Rates category to gain easier access to our daily FHA rates column:
Author: Alan Lake
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